Petrol price expected to drop further in November's fortnightly review

• Report claims petrol price dropped from $77.5 per barrel to $76 globally.
• Final change to be determined after reviewing the global rate on Oct 31.
• If authorities adjust IEFM, petrol price may increase by Re0.78 per litre.

ISLAMABAD: Prices of petroleum products in Pakistan may witness a decline of up to Rs3.50 per litre from November 1 for the next fortnight, sources told Geo News.

According to the sources, a reduction of up to Rs 3.50 per litre in prices of petrol, diesel and kerosene oil is expected for the upcoming 15-day period beginning November 1, driven by a recent cut in global crude oil price.

However, the final change in fuel prices will be determined after reviewing the global rate on October 31.

A report, published in The News, claimed that the average price of petrol had dropped in the international market to $76 per barrel from $77.5 per barrel.

Furthermore, the report stated the price of petrol may increase by Re0.78 and HSD by Re0.26 per litre, if the authorities adjust the internal equalisation freight margin (IEFM) of Rs2-3 per litre at least, which the government kept negative for the ongoing fortnight from October 16, 2024, to keep the POL prices at the lower side, though international prices went up.

In case the authorities adjust the IEFM, even then the price of kerosene oil will go down by Rs1.42 and light deiseal by Rs3.32 per litre.

The government earlier reduced IFEM by Rs3.04 and Rs4.07 per litre for HSD and Mogas, respectively owing to which oil marketing companies and refineries faced losses.

In a letter, written on October 16, 2024, to the Oil and Gas Regulatory Authority (Ogra) chairman, the Oil Companies Advisory Council (OCAC) said the government deviated from its existing pricing formula.

To manage the prices at the lower side from October 16, 2024, the Customs Duty for HSD was reduced from Rs15.18 to Rs13.26 per litre.